Roth excess

Forum|Forum|3 years ago
February 9, 2023
1 reply
3 views

Put $6000 in Roth 12/15/22 and determined it was not a wise move as I had withdrawn money from my regular IRA earlier in 2022. I had Fidelity take it back out in Jan 2023 along with $174 in earnings that they calculated based on irs regulations. It does not appear like a new 1099R will be issued. How do I treat this in the Turbotax program when it asks about Roth contributions? My current 1099R only shows the contribution and not the money being taken back out or the $174.

ThomasM125

Level 15

The best thing to do would be to report the distribution made in 2023 on your 2022 tax return. Otherwise, you will need to amend your 2022 tax return in 2024 when you get the form 1099-R reporting the distribution belonging in 2022.

If you wish to report the earnings on your excess Roth IRA contribution distribution in the current year, you will need to make a substitute form 1099-R entry in Turbo Tax. Please follow these instructions:

Choose the Federal option on your left menu bar
Choose Wages & Income
Choose IRA, 401(k), Pension Plan Withdrawals (1099-R)
Choose the Financial Institution or other provider (1099-R) option
Enter your pension distribution information by completing a form 1099-R entry
Work through the section until you see a screen that says Do any of these situations apply to you? And check the box that says I need to file a substitute 1099-R

You need to enter the distribution amount in box 1 and the earnings in box 2(a) and enter code "T" and "P" in box 7. Indicate that the Form 1099-R is for 2023.

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